A decrease in the price of milk willA) increase the demand for milk.B) reduce the demand for milk.C) reduce the demand for orange juice, a substitute for milk.D) do both a and c

Question

A decrease in the price of milk willA)  increase the demand for milk.B)  reduce the demand for milk.C)  reduce the demand for orange juice, a substitute for milk.D)  do both a and c

Adesina Qudus · Accepted Answer

Final Answer : C, Explanation :  A decrease in the price of milk will not increase the demand for milk but will increase the quantity demanded. However, it can reduce the demand for orange juice, a substitute, as consumers may switch to the now cheaper milk.

A decrease in the price of milk will

A) increase the demand for milk.
B) reduce the demand for milk.
C) reduce the demand for orange juice, a substitute for milk.
D) do both a and c

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